Fourth Quarter 2010

Results
24 February 2011

Disclaimer
Informationcontainedinourpresentationisintendedsolelyfor yourreference.Such
informationissubjecttochangewithoutnotice,itsaccuracyis notguaranteedanditmaynot
containallmaterialinformationconcerningtheCompany.Neither wenorouradvisorsmake
anyrepresentationregarding,andassumesnoresponsibilityorliabilityfor,theaccuracyor
completenessof,oranyerrorsoromissionsin,anyinformationcontainedherein.
Inaddition,theinformationmaycontainprojectionsandforwardlookingstatementsthat
reflectthecompanyscurrentviewswithrespecttofutureeventsandfinancialperformance.
Theseviewsarebasedoncurrentassumptionswhicharesubjecttovariousrisksfactorsand
whichmaychangeovertime.Noassurancecanbegiventhatfutureeventswilloccur,that
projectionswillbeachieved,orthatthecompanysassumptionsarecorrect.Actualresults
maydiffermateriallyfromthoseprojected.
ThispresentationcanbedistributedwithoutanyconsentoftheCompanyasthisisapublicly
availableannouncement.

FY2010
Remarkable performance for AirAsia Group
Malaysiabreaksbillionringgitnetprofitbarrier
ProfitaftertaxofRM1.06billionup111%yoy
AchievedbillionringgitnetprofitwithaveragefuelpriceperbarrelofUS$92inFY2010as
comparedtoUS$70inFY2009
Thailandsperformancesoaring
RevenueofTHB12.4billionrecording33%yoygrowth
ProfitaftertaxofTHB2.85billionwithagrowthof452%yoy
Passengervolumeup14%yoy,achieved78%loadfactor
Indonesia:Reachingnewheight
RevenueofIDR2,764billionrecording37%yoygrowth
ProfitaftertaxofIDR474billionwithagrowthof214%
Passengervolumegrewby13%yoy,achieved77%loadfactor
Ancillaryspendingperpaxontherise
Malaysia=RM4339%,Thailand=THB31062%,Indonesia=IDR123,30860%
Netgearingdownto1.75from2.62yoy
Furtherdebtreductionbyassociatesastheycontinuetorepay.Fullrepaymentswithin1 2years
Strongcashbalance
Malaysia=RM1.5billion,Thailand=RM57million,Indonesia= RM14million

LowestP/Eairlinewiththebiggestgrowthprospects

FY2010 Financial Results

- AirAsia Group
Financialyearended
31December2010

MAA

TAA

Total

IAA

2010

2009

2010

2009

2010

2009

2010

2009

(RM000)

(RM000)

(RM000)

(RM000)

(RM000)

(RM000)

(RM000)

(RM000)

Revenue

3,992,772

3,178,854

1,247,798

948,727

979,118

687,196

5,619,687

4,814,778

EBITDAR

1,735,325

1,364,232

428,161

86,400

287,846

74,152

2,451,331

1,524,784

EBITDA

1,669,633

1,257,162

206,550

87,798

114,255

70,902

1,990,439

1,098,462

EBIT

1,148,717

809,520

194,146

99,948

108,831

75,013

1,451,694

634,558

Profitbeforetax

1,099,298

622,288

286,567

82,298

168,051

64,490

1,553,917

475,500

Profitaftertax

1,066,877

506,268

286,567

82,298

168,051

64,490

1,521,496

359,480

CoreOperatingProfit/(Loss)

828,294

281,996

15,092

152,356

27

EBITDARmargin
CoreOperatingProfitmargin

447,454

1,263,276

462,519

51.1%

42.9%

34.3%

9.1%

29.4%

10.8%

43.6%

31.7%

24%

14%

23%

2%

16%

0%

22%

10%

1) Exchange Rate:

Associatesgrowingpace!

MYR/THB: 9.93 & 9.83

CombinedPATofassociatesofRM455million2010is30%ofMAA
Despiteincreaseinfuelprice,EBITDARmarginsup0.5ppt,25.2ppt
and18.6pptinMAA,TAAandIAArespectively

2) Refer to appendix for the financial performance in respective currency

MYR/IDR: 2,823 & 2,934

4th Quarter
Great finish to the year
Malaysiastellarperformance
Revenue ofRM1.19billionrecording33%yoygrowth
ProfitaftertaxofRM316million,up835%yoy
Passengervolumeup11%yoy,achieved82%loadfactor

Thailand:Anotherstrongperformance
RevenueofTHB3.74billionrecording29%yoygrowth
ProfitaftertaxofTHB1.64billionwithagrowthof364%yoy
Passengervolumeup13%yoy,achieved81%loadfactor

Indonesiarevsup
RevenueofIDR796billionrecording38%yoygrowth
ProfitaftertaxofIDR167billionwithagrowthof214%
Passengervolumegrewby7%yoy,achieved78%loadfactor

Ancillaryspendingperpaxinontherise
Malaysia=RM4999%,Thailand=THB369109%,Indonesia=IDR155,089108%
4

4Q10 Financial Results

- AirAsia Group
QuarterEnded:
31December2010

MAA
4Q2010
(RM000)

TAA

4Q2009

TOTAL

IAA

4Q2010

4Q2009

4Q2010

4Q2009

4Q2010

4Q2009

(RM000) (RM000)

(RM000)

(RM'000)

(RM'000)

(RM'000)

(RM'000)

Revenue

1,186,467

894,059

388,823

296,971

276,398

207,451

1,851,688

1,398,481

EBITDAR

584,433

387,083

164,717

28,729

57,361

15,192

806,511

343,162

EBITDA

571,951

369,292

101,883

76,252

7,486

56,119

681,320

236,921

EBIT

423,740

229,881

99,536

79,401

57,304

523,282

93,177

Profitbeforetax

390,222

223,750

170,728

63,654

57,983

52,662

618,933

107,434

Profitaftertax

316,551

33,871

170,728

63,654

57,983

52,662

545,262

-82,445

CoreOperatingProfit/(Loss)

332,879

134,720

184,424

34,134

3,631

13,128

520,934

155,726

EBITDARmargin

49.3%

43.3%

42.4%

9.7%

20.8%

7.3%

43.6%

24.5%

CoreOperatingProfitmargin

28.1%

15.1%

47.4%

11.5%

1.3%

6.3%

28.1%

11.1%

MAASuperbquarter!
TAA Finishesonahigh!
IAA Gainingpace!
Revenueandprofitaftertaxgrew
Fromlossmakingto364%growthinprofit Revenueandprofitaftertaxup38%
33%and832%respectivelyyoy
and214%yoydespitenonpeak
aftertaxyoypostingRM170.7mil
EBITDARmarginsincreasingto49.3%
season
Coreoperatingprofitup147%yoy StrongEBITDARmarginsincreaseto42.4%
EBITDARgrowthof491%yoy
ofRM164.7mil
1) Exchange Rate:

MYR/THB: 9.63 & 9.79

MYR/IDR: 2,879 & 2,782
2) Refer to appendix for the financial performance in respective currency

Higherancillaryrevenueandfares
contributedto29%growthyoyofrevenue

Internationalroutespayinghuge
5
dividends

4Q10 Operating Statistics

- AirAsia Group

MAA

IAA

4Q2010

4Q2009

ASK

6,434

5,863

10%

2,043

1,852

10%

1,788

1,604

11%

RPK

5,319

4,409

21%

1,638

1,493

10%

1,392

1,188

17%

Loadfactor

82%

79%

3ppt

80%

81%

1ppt

78%

74%

4ppt

Rev/ASK(sen/
THB/IDR)

18.44

15.25

21%

1.79

1.52

18%

442.27

363.14

22%

Rev/ASK(UScents)

5.92

4.48

32%

5.98

4.57

31%

4.93

3.84

29%

CASK(sen/THB/IDR)

11.85

11.12

7%

0.85

1.99

50%

435.89

459.22

5%

CASK(UScents)

3.81

3.27

16%

4.55

5.97

45%

4.86

4.85

0%

CASK(exfuel)(US
cents)

2.35

1.88

25%

2.85

4.27

62%

2.95

3.12

5%

AverageFare

188

176

7%

1,889

1,789

6%

634,864

545,410

16%

MAA
Averagefareup7%yoydueto
increaseddemandinpeakseason

TAA

QuarterEnded:
31December
2010

RASKup32%yoyduetoincrease
infaresandbiggercontribution
fromancillaryIncome

Change
4Q2010
yoy

4Q2009

Change
4Q2010
yoy

TAA
CASKdown50%duetoreductionin
earlydeliverycost

Averagefarestillup6%duethe
introductionroutesandhighpeak
season.

Loadfactormaintaineddespite
capacityincrease

4Q2009

Change
yoy

IAA
Averagefareup16%yoyduestrong
performingAustraliaroutes
RASKup29%yoycontributedfromahigh
increaseinancillaryspendingwhichrose
108%
Maintaininghighloadfactorof78%as
passengergrowthexceedcapacity
6

Ancillary Income
- AirAsia Group
AncillaryIncomeperpaxupyoyacrosstheGroup:
Malaysia:99%
Thailand: 109%
Indonesia: 108%
Malaysia (RM)

Baggageandcargorevenuescontinuetosoar
Highertakeupsforinflightmeals,HotSeatandAirAsiaInsure

Gearing down, Cash up!

AirAsia
Berhad

2Q2009

3Q2009

4Q2009

1Q2010

2Q2010

3Q2010

4Q2010

NetDebt
(RMmil)

6,726

6,688

6,862

6,248

6,728

6,705

6,356

Net
Gearing

3.50

2.60

2.62

2.25

2.27

2.02

1.75

Addressinggearingbyreducingfurtherto1.75times
AchievedcashuptoRM1.8billion
CashbalanceofRM1.5billionasatend4Q10
Includingdepositsonaircraftpurchases,totalcashisclosetoRM1.8billion
Cashbalancetofurtherincreasewithexpectedpaymentsfromaffiliates
AmountduefromaffiliatesdecreasedfromRM823miltoRM376mil within12months
AffiliatestopayoffprojectedpaymentofintercoborrowingsafterproposedIPOorwithin
12years
8

Fleet Development
Source: CAPA

CURRENT AIRASIA GROUP FLEET SIZE PLAN

AirAsia Group

93

86

Boeing B737

Singapore Airlines

110

48

Airbus A320

Malaysia Airlines

92

59

Thai Airways

86

21

Garuda Indonesia

81

35

62
139

Philippines Airways

40

Cebu Pacific

32

19

Bangkok Airways

17

Silk Air

18

Tiger Airways

25

43

86
56 70

2012E

57

94 106

2011

Lion Air

2010

65

2009

Vietnam Airlines

19 14

130

154

175

2015E

On Order

2014E

In Service

2008

Airlines

2013E

Fleets of various Asian Airlines

AirAsiaGrouphasthebiggestandyoungestfleetamongtheLCCsintheregionwithanaverageageof2years
86aircraftstillonorder;IndiscussionswithAirbustoacquirethenewengineoption (NEO)AirbusA320aircraft
Defermentof2012aircraftdeliveriesfrom24to14withnopenaltyfromAirbus
Financingfor8aircrafttobedeliveredin2011issecured
Tophaseoutremaining4BoeingB737inIndonesiauponcompletionofrunwayupgradeinBandung

Attractive Valuations among airlines

(as at 22 February 2011)
LargestregionalLCC
intermsofmarket
capitalization
LowestP/Eamongthe
LCCs
DespiteP/Eislow,
thereisupsideinROE.
Amongthehighestat
27.99%

Source:AirAsia Actual2010,
Otherairlines Bloombergconsensus

10

Into the
Second
Decade

11

Forward Bookings
Load factor as at 22 February 2011
Malaysia

Thailand

Indonesia

Increaseindemandonairtravel
Forwardbookingremainshigherheadinginto
2Q11asdemandfortravelrises
Faresstillamonglowestinthemarkethence
thereisroomtoincrease
Continuouspromotionalfornewroutesand
additionalfrequencies
12

Fuel Management
Proven active measures to counter any spike in fuel prices
RecordPATofRM1.06billionin2010ataveragefuelpriceofUS$92/barrelatfleetsizeof90aircraft
AirAsiawasthefirstairlinetobeabletoremovefuelsurchargeinNovember2008.
Countermeasuresamongstothers:
Reintroducefuelsurcharge
Ancillaryinitiatives everyRM1/paxspentprovidesapproximatelyUS$1/barrelofbuffer
Higheraircraftcapacityenablescoststospreadacrossmorepassengers
Currentoilhedgingposition
Hedgedupto21%forupto2Q11ataverageofUS$92.31/barrel (fixedswapWTI)
Hedgeshavenomargincallsimpact
Hugelineswithseveralinstitutionsforoilhedging
Abilitytohedgethroughfinancialmarketsorphysicallywithoilsuppliers
Projectedsensitivityanalysisshowsevery/+US$1/barrelonfuelmovementswillimpact
approximately/+RM15millioninEBITDAandPAT.

13

AirAsia Group
Whats ahead in 2011
MALAYSIA
StrengtheningDomesticOperations
RampingupfrequenciesonkeyEastMalaysianroutesperformingwell
Increasingdomesticmarketshareof58%in2010
Internationalmarketshareof37%in2010
Focusonoptimizingloadfactor
IncreasedfrequenciesonroutesthatispopularwithAirAsiaXtraffic.AirAsiaXactsasafeederfor
AirAsianetwork.
Tomaintaindisciplinecostmanagementacrosstheorganization
Reduceaveragestagelengthandfocusonshorterrouteswithin3.5hours(i.e.Indiansub
continents)
[

THAILAND
Torevenuemanagekeydomesticandinternationalroutes(i.e.Indianroutes)
DevelopingChiangMaiasThailand3rd hubtostrengthengroupnetwork
Toincreasedomesticmarketshare(largestLCCwith43%marketsharein2010)
FurtherexpansionintoChina
INDONESIA
Strengtheningdominanceininternationalsector
Leaderininternationalmarketshareof41%
GrowingexistinghubssuchasBaliandSurabayaandintroducing MedanasIndonesia5th hub

14

AirAsia Group
Whats ahead in 2011
Joint Ventures

Listing of Associates

Monetising other
AirAsia business units

Growing Ancillary
Income

The launch of Philippines AirAsia in 2H11

TAA and IAA impending initial public offering
Objectives of the IPO is to:
build its war chest
to assume future debt on their balance sheet
to acquire their own aircraft in the future
AirAsia Academy as centre of excellence for pilot training to match
future capacity needs ( i.e acquiring more flight simulators
AirAsia Go to benefit from AirAsia brand and IT penetration rate
AirAsia X symbiotic feeder relationship and potential listing in 2012

Medium term target of RM50-60 per pax

Introducing other ancillary revenue

Focus on managing
leverage

Revised fleet delivery of 14 from 24 in 2012

No penalty cost from Airbus
Secured financing for 2011
Focus on expanding war chest

Managing oil prices

To push ancillary income as its a natural hedge

To hedge in-line with forward booking

15

Thank You 2010

Appendix

17

Appendix 1

4Q10 Financial Results

- AirAsia Group
QuarterEnded:
31December
2010

MAA

TAA

IAA
Chang
4Q2010
e
(IDRmil)
yoy

4Q2010 4Q2009 Change

4Q2010
(RM000) (RM000) yoy (THB000)

4Q2009
(THB000)

Revenue

1,186,467

894,059

33%

3,744,361

2,907,347

29%

795,750

577,217

38%

EBITDAR

584,433

387,083

51%

1,586,223

(281,256)

664%

165,142

(42,272)

491%

EBITDA

571,951

369,292

55%

981,133

(746,508)

231%

21,551

(156,148)

114%

EBIT

423,740

229,881

84%

958,535

(777,334)

223%

16.521

(159,443)

110%

Profitbeforetax

390,222

223,750

74%

1,644,110

(623,171)

364%

166,934

(146,528)

214%

Profitaftertax

316,551

33,871

835%

1,644,110

(623,171)

364%

166,934

(146,528)

214%

EBITDARmargin

49.3%

43.3%

6ppt

42.4%

9.7%

52ppt

20.8%

7.3%

28ppt

CoreOperating
Profit/(Loss)

332,879

134,720

147%

334,174

431%

10,453

(36,528)

129%

1,776,003

4Q2009 Change
(IDRmil) yoy

Appendix 2

4Q10 CASK Breakdown

- AirAsia Group
Quarter ended: 30 December 2010
Cost / ASK (US cents)

MAA

TAA

IAA

StaffCosts

0.46

0.51

0.50

FuelandOil

1.46

1.70

1.91

UserChargesandStationExpenses

0.33

0.55

0.29

MaintenanceandOverhaul

0.22

0.33

0.85

Aircraftrelatedcost

0.06

0.99

0.90

Depreciation&Amortisation

0.74

0.04

0.03

Others

0.37

0.05

0.19

Sales&Marketing

0.16

0.39

0.20

TotalCost/ASK

3.81

4.55

4.86

19

Appendix 3

FY2010 Financial Results

- AirAsia Group
MAA

TAA

IAA

Financialyear
ended31
December
2010
2010
(RM000)

2009
(RM000)

Revenue

3,392,772

3,178,854

26%

12,390,632

9,325,988

33%

2,764,049

2,016,626

37%

EBITDAR

1,735,325

1,364,232

27%

4,251,637

849,309

401%

812,588

217,604

273%

EBITDA

1,669,633

1,257,162

33%

2,051,046

(863,055)

338%

322,542

(208,067)

255%

EBIT

1,148,717

809,520

42%

1,927,866

(982,491)

296%

307,231

(220,132)

240%

Profitbefore
tax

1,099,298

622,288

77%

2,845,614

(808,990)

452%

474,409

(189,250)

351%

Profitafter
tax

1,066,877

506,268

111%

2,845,614

(808,990)

452%

474,409

(189,250)

351%

43.5%

42.9%

0.5ppt

34.3%

9.1%

25.2ppt

29.4%

10.8%

18.6ppt

EBITDAR
margin

Change
2010
2009
Change
2010
yoy (THB000) (THB000) yoy (IDRmil)

2009
Change
(IDRmil) yoy

20

Appendix 4

FY2010 Operating Statistic

- AirAsia Group
Malaysia AirAsia

2010

2009

Change
(%)

Passenger Carried

16,054,738

14,253,244

Capacity

20,616,120

19,016,280

78

75

3ppt

ASK (mil)

24,362

21,976

10.9

RPK (mil)

18,500

15,432

19.9

Number of stages
Average stage length (km)

114,534
1,183

105,646
1,166

8.4
1.5

Size of fleet at quarter end

53

48

10.4

2010

2009

Passenger Carried

5,704,832

4,988,315

Capacity

7,317,097

6,558,768

78

76

ASK (mil)

7,604

6,356

19.6

RPK (mil)

5,923

4,811

23.1

Number of stages
Average stage length (km)

41,823
1,034

39,388
955

6.2
8.3

Size of fleet at quarter end

19

20

2010

2009

Load Factor (%)

Thai AirAsia

Load Factor (%)

Indonesia AirAsia

12.6
8.4

Change
(%)
14.4
11.6
2 ppt

Change
(%)

2010

2009

25,680,609
33,058,197
78

22,703,455
30,276,656
75

13.1
9.2
3ppt

ASK (mil)
RPK (mil)

38,706
29,607

33,942
24,378

14.0
21.5

Number of stages
Average stage length (km)
Size of fleet at quarter end

186,025
1,176
90

173,297
1,100
84

7.3
6.9
7.1

Passenger Carried
Capacity
Load Factor (%)

-5.0

Change
(%)

Passenger Carried

3,921,039

3,461,896

Capacity

5,124,980

4,701,608

77

74

ASK (mil)

6,740

5,610

20.1

RPK (mil)

5,183

4,134

25.4

Number of stages
Average stage length (km)

29,668
1,310

28,263
1,179

5.0
11.1

Size of fleet at quarter end

18

16

12.5

Load Factor (%)

AirAsia Group

13.3
9.0
3ppt

Appendix 5

Accounting for TAA and IAA

Overview

AirAsiahasinvestmentsof48.9%inbothTAAandIAA

TheaviationlawsofThailandandIndonesiarequireforeignshareholdingstonotexceed50%
interestintheseentities

Basedontheshareholders agreementsfortheseentities,TAAisconsideredtobeajointly
controlledentityandIAAisconsideredtobeanassociateofAirAsia.

Thebasisofthisconsiderationisduetothevariouscovenantsintheagreementswherebyinthe
caseofTAA,keydecisionsaretakenjointlyandinthecaseofIAA,AirAsiahasonlysignificant
influence

AccountingConsiderations

AirAsiasaccountingtreatmentforitsinvestmentsinIAAandTAAisinfullcompliancewith
InternationalFinancialReportingStandards(FRS)

TheIFRSappliedareFRS131AccountingforJointyControlledEntities (IFRS31)whichappliesto
TAAandFRS128 AccountingforAssociates (IFRS28)whichappliestoIAA

TAAandIAAareaccountedforusingtheequitymethodofaccountingpertherespectiveStandards

ConsolidationofTAAandIAAisstrictlyprohibitedbytheIFRSunlesstheshareholderarrangements
change,whichresultinAirAsiahavingcontrol.AirAsiacanaccountforallthelossesofTAAandIAAif
itassumesobligationsforallliabilitiesofTAAandIAAwhichwillobviouslybedetrimentaltothe
22
shareholdersofAirAsia

Accounting for TAA and IAA

(continued)
EquityAccounting

Theequitymethod isamethodofaccountingwherebytheinvestmentisinitiallyrecognised
atcostandadjustedthereafterforthepostacquisitionchangeintheinvestorsshareofnet
assetsoftheinvestee.Theprofitorlossoftheinvestorincludestheinvestor'sshareofthe
profitorlossoftheinvestee.

FRS128andFRS131providethatifaninvestorsshareoflossesofanassociateorjointly
controlledentityequalsorexceedsitsinterestintheassociate,theinvestordiscontinues
recognisingitsshareoffurtherlossesunlesstheinvestorhasincurredlegalorconstructive
obligationsormadepaymentsonbehalfoftheassociate.

Consequently,astheshareoflossesforbothTAAandIAAhaveexceededthecostof
investmentintheseentities,AirAsiahasinprioryearsfullyprovidedforthecostof
investmentinbothTAAandIAA(amountingtoRM12millionandRM4millionrespectively),and
discontinueditsrecognitionofshareofanyfurtherlosses,asrequiredbytheStandard,asit
hasnotprovidedanylegalorconstructiveobligationsormadepaymentsonbehalfofthe
associateorjointlycontrolledentity.

23